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UsedtoSkidoo

Dealer stories- Good and bad

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Long story, but back in about 2003 4 of us were planning a trip to ride from Thedford Ontario to Kapuskasing. I was riding a rather Problematic machine at the time and didn't trust it to make the trip. I went in to Fast Track Performance in Dorchester,  who I had been dealing with for parts for a while, and told Charlie that I needed a used sled that he could guarantee would make the trip. Bought a 2001 Zrt 800 that he had. 2 days later we were on the trails. About 10kms from from finishing the trip in Kap, I called him from the side of the trail, and let him know she seized up. He said drop it off when you get home. It took 2 jugs, pistons, crank and balance shaft to rebuild it, and he handed it back. No questions asked.

I have now bought 4 sleds, 2 bikes and I would hate to guess how much other "stuff" from them, because of that customer service I received 18yrs ago.

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Keep in mind dealers get paid for warranty work by manu's in parts credit, I would think that would have a huge bearing in what gets stocked and what gets ordered. I'm guessing they need to turn over warranty credit parts as quick as possible just to cover the cost of the warranty work they did. For sure a juggling act I wouldn't want to deal with. 

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2 hours ago, Nutter said:

Keep in mind dealers get paid for warranty work by manu's in parts credit, I would think that would have a huge bearing in what gets stocked and what gets ordered. I'm guessing they need to turn over warranty credit parts as quick as possible just to cover the cost of the warranty work they did. For sure a juggling act I wouldn't want to deal with. 

Are you speaking of snowmobile dealers?

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7 hours ago, Nutter said:

Keep in mind dealers get paid for warranty work by manu's in parts credit, I would think that would have a huge bearing in what gets stocked and what gets ordered. I'm guessing they need to turn over warranty credit parts as quick as possible just to cover the cost of the warranty work they did. For sure a juggling act I wouldn't want to deal with. 

Dealers have to apply for warranty consideration.  Sometimes they are refused and either have to fight for it or bill customer for repair or eat the cost of repair.

 

And the factory gives the warranty parts to dealer but dealer does not make margin on these parts.  only makes money on the Labour on the warranty repair.   And warranty repair might be at a set rate for labour on a repair while labour might be higher if they run into an issue during the repair.

 

Its better for a dealer to do a customer billed job as they make money on parts and labour.

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53 minutes ago, Sksman said:

Dealers have to apply for warranty consideration.  Sometimes they are refused and either have to fight for it or bill customer for repair or eat the cost of repair.

 

And the factory gives the warranty parts to dealer but dealer does not make margin on these parts.  only makes money on the Labour on the warranty repair.   And warranty repair might be at a set rate for labour on a repair while labour might be higher if they run into an issue during the repair.

 

Its better for a dealer to do a customer billed job as they make money on parts and labour.

I wouldn't be so sure of that information. 

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1 hour ago, Sksman said:

Dealers have to apply for warranty consideration.  Sometimes they are refused and either have to fight for it or bill customer for repair or eat the cost of repair.

 

And the factory gives the warranty parts to dealer but dealer does not make margin on these parts.  only makes money on the Labour on the warranty repair.   And warranty repair might be at a set rate for labour on a repair while labour might be higher if they run into an issue during the repair.

 

Its better for a dealer to do a customer billed job as they make money on parts and labour.

That was not the way warranty parts worked with either of the truck brand dealerships that I worked at. dealers were allowed a specified percentage of markup on warranty parts.

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Dealers definitely get paid a markup on warranty parts.    

 

The flat rate that is paid is sometimes the issue.

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4 hours ago, Sksman said:

Dealers have to apply for warranty consideration.  Sometimes they are refused and either have to fight for it or bill customer for repair or eat the cost of repair.

 

And the factory gives the warranty parts to dealer but dealer does not make margin on these parts.  only makes money on the Labour on the warranty repair.   And warranty repair might be at a set rate for labour on a repair while labour might be higher if they run into an issue during the repair.

 

Its better for a dealer to do a customer billed job as they make money on parts and labour.

Dealer gets cost plus 10% in auto warranty parts in automotive, should be the same in powers ports. They incur costs to handle parts.

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14 minutes ago, scottyr said:

Dealers definitely get paid a markup on warranty parts.    

 

The flat rate that is paid is sometimes the issue.

The dealers usually are not as uptight about the warranty hours paid as are the techs doing the work. It depernds how much cp work is not getting sold due to warranty sucking up shop time.

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3 hours ago, zoso said:

Dealer gets cost plus 10% in auto warranty parts in automotive, should be the same in powers ports. They incur costs to handle parts.

It was much more than 10% when I worked for Ford. 

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8 hours ago, catinental couch said:

It was much more than 10% when I worked for Ford. 

Much more than 10% where I worked to. Mind you parts cost to run the department was way more than 10% of parts cost as well.

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Most OEMs pay retail now.   KTM pays retail on parts for warranty work.   

 

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I will have to check at work what we get.

 

At a previous employer we did not make margin on warranty parts.  Small construction equipment supplier dealing with smaller manufacturer.

 

Then again maybe I was misled by owner also.

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3 hours ago, Sksman said:

I will have to check at work what we get.

 

At a previous employer we did not make margin on warranty parts.  Small construction equipment supplier dealing with smaller manufacturer.

 

Then again maybe I was misled by owner also.

Different industries have different standards 

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On 4/2/2021 at 5:13 PM, Sksman said:

Dealers have to apply for warranty consideration.  Sometimes they are refused and either have to fight for it or bill customer for repair or eat the cost of repair.

 

And the factory gives the warranty parts to dealer but dealer does not make margin on these parts.  only makes money on the Labour on the warranty repair.   And warranty repair might be at a set rate for labour on a repair while labour might be higher if they run into an issue during the repair.

 

Its better for a dealer to do a customer billed job as they make money on parts and labour.

 

And get paid on time!

 

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